Case Study: a major international INGO cuts fraud losses with BDO fraud investigation and prevention

a major international INGO uncovers $1,000,000 in fraud with BDO

A major international INGO receiving most of its funding from USAID faced a significant fraud challenge. An internal tip revealed irregularities in payroll and bank reconciliation processes, which their own internal audit team could not fully assess. The organization, advised by outside counsel, sought external expertise in forensic analysis and selected BDO for its team of consultants, CPAs, and CFEs specializing in nonprofit investigations.

BDO implemented a comprehensive forensic investigation, which included a review of policies, staff interviews, and a detailed analysis of thousands of emails and payroll transactions. They uncovered a long-running scheme where an accountant created ghost employees to pay family members, resulting in over $1 million in fraudulent transactions. BDO quantified the loss, reported on 182 fraudulent payroll entries, and provided the client with a list of recommendations to improve controls and prevent future fraud.